IBLC formed a well-structured base between July and September 2025 following the tariff-related recovery, developing characteristics consistent with a VCP / cup-with-handle style base. On 9 September, the ETF broke out decisively from this base, with strong participation across multiple underlying names within the crypto infrastructure theme.
Below is a brief review of how several leading names within the sector behaved during this period and what they signalled about broader theme strength.
IREN
IREN formed a VCP / cup-with-handle structure closely resembling IBLC’s base but notably broke out ahead of the sector on 22–23 August. This early breakout, combined with strong relative strength, positioned IREN as a clear leader within the theme.
While IBLC was still completing the handle portion of its base, IREN consolidated constructively in a brief high tight flag before breaking out again alongside the broader sector. This behaviour is characteristic of true market leaders, which often move in advance of the sector and can provide early signals of growing momentum within a sector.
WULF
WULF also showed showed strength ahead of the broader sector, gapping up on earnings on the highest volume the stock has ever seen on the 14th of August while the broader sector was still forming the handle of its base. It then formed a tight, sideways consolidation near the 10-day moving average before breaking out in alignment with the sector on 9 September.
Its ability to advance ahead of the broader group coupled with the positive reaction post high volume gap up served as a useful “tell” that accumulation within the theme was increasing.
BITF
BITF also put in a very similar VCP pattern as the general market, but delivered arguably the most explosive breakouts on the highest volume its seen, with consecutive HVE days on subsequent up days that followed.
After an approximate 160% advance, the stock staged an orderly pullback to the 10-day moving average and formed a clean high tight flag before comencing a continuation move of roughly 100%.
BITFs move mostly tracked the broader sector, and if you were watching the leaders, you would have been able to easily capitalise on a big chunk of this over 250% move.
WGMI
While IBLC developed more of a cup-with-handle consolidation, WGMI displayed a higher-high channel structure, indicating relative strength versus the broader sector. Similar to IBLC, it broke out of its consolidation on 9 September and subsequently formed a high tight flag, which presented a solid secondary entry point before commencing its move.
Conclusion
In studying the blockchain sector over September to October, we’re given a case study into how sectors move together, and how tracking both individual names along with the broader sector performance can provide early indications of potential expansion. IBLC’s clean base acted as a clear sign of accumulation, while leading stocks such as IREN and WULF exhibited relative strength oferring additional clues to the upcoming move.
A few broader observations stand out:
- Tracking emerging themes can provide early context for individual stock setups
- Initial breakouts from well-formed primary bases often offer the highest-quality opportunities
- Generally speaking, subsequent bases tend to carry higher failure risk as the move becomes extended. Particularly when it comes to an explosive industry such as blockchain, there will often be a clean secondary entry, but beyond this, later bases will be failure prone
- True leaders frequently display strength before the broader sector confirms
Overall, monitoring both sector structure and leading individual names can significantly improve the ability to identify developing trends and anticipate potential breakout phases within a theme.